It’s fair to say that a huge percentage of us will be feeling the pinch at the moment, and with rising taxes and a recession on the horizon we’ll all be looking to save costs where we can to ensure we can live happy, healthy lives. Or at the very least afford to put food on the table and keep our homes warm.
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Many outlets are reporting that a recession will happen in 2023, so preparation for that is key, with Bloomberg economists predicting that it will 100% happen. So how exactly do we prepare for that?
Cut down your regular outgoings
Firstly, take a look at what you can cut down on and find savings on. This can really vary and cover every element of your life, from the cost of your insurance and phone and internet plans, to your grocery shop and lifestyle purchases.
Can you find cheaper insurance deals? Do you need that many streaming subscriptions?
Ask these questions, and then think about your lifestyle too. Could you change up your trip to the coffee shop for making coffee at home? Cut you cut down on your alcohol intake?
The latter can certainly be costly over the period of a year, particularly for heavy drinkers. Especially when you factor in what drinking alcohol regularly can lead to, such as taxi fares, takeaway costs, and even medication if it’s particularly bad. Not only will an alcohol detox do your finances good, but also your health in both the short and long term as well.
Hunt for side hustles
During COVID, many of us went on the hunt for side hustles, from dedicating time to arts and crafts to spending a few hours an evening as a Deliveroo driver. And the side hustle is certainly going to be integral for some people in staying afloat.
Bar work, dog walking, answering online surveys and plenty of other activities can add an additional slice of income, with the opportunity to earn nice sums if you have enough time to dedicate towards them.
Transfer extra income into hard to reach savings, and build an emergency fund
It’ll be more important than ever to save any additional income you have once you’ve found your feet with your finances. Having a stockpile of emergency funds is always important, especially during difficult times.
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Placing that income in a hard to reach savings account will help prevent you from dipping into it unnecessarily, and only when you need it, meaning if you do encounter financial hardship for any reason, then you’ll be in a better position to solve that problem.